Cyprus Sets Up New Company to Handle Sales of Hydrocarbons

Cyprus approved the creation of a new company to handle sales of recently discovered natural-gas reserves, Commerce Minister Neoklis Sylikiotis said.

The Cyprus Hydrocarbons State Company will be run as a private entity, Sylikiotis said today, according to a transcript of his comments on the Ministry’s website. Revenue from the company will be directed to a special fund for hydrocarbon infrastructure investment as well as to the state budget and a savings plan for future generations, he said.

The government also commissioned the Massachusetts Institute of Technology to prepare a report on integrating Cypriot hydrocarbon reserves into the national energy system. The study, in addition, will focus on the commercialization and distribution of hydrocarbons to European and international markets, infrastructure issues and possible cooperation with other countries in the southeastern Mediterranean, Sylikiotis said.

To contact the reporter on this story: Paul Tugwell in Athens at ptugwell1@bloomberg.net

To contact the editor responsible for this story: Jerrold Colten at jcolten@bloomberg.net